Murphy Oil Company Ltd.

Transcription

1 Murphy Oil Company Ltd. Seal Central HCSS Demonstration Project May 2015 MURPHY OIL CORPORATION NYSE: MUR 1

2 Our Purpose Today On February 27 th, 2015 Murphy Oil Corporation filed an application build a 12,450 bbl/day thermal oil project using horizontal cyclic steam stimulation at Seal Lake Our purpose today includes: Placing this new project within the context of Murphy s current Peace River Operations Providing you with a short summary of the new thermal project including: Its location and size The proposed technology The project schedule and The social, environmental and economic effects Answering any questions you may have arising from this presentation MURPHY OIL CORPORATION NYSE: MUR 2

3 Murphy Oil Corporation Ltd. Murphy is an international company producing oil and gas in the U.S., Malaysia, and Canada In Canada, Murphy is the operator in two areas: Northern B.C. (Dawson Creek); Northern Alberta (Peace River) Murphy has been operating in: Canada since 1951 The Peace River area since 2003 MURPHY OIL CORPORATION NYSE: MUR 3

4 Current Murphy Peace River Operations Current Peace River operations are made up of: Cold Heavy Oil Cadotte 2 well Cliffdale 13 well Seal Lake 95 well pads/4 central treat facilities Thermal Heavy Oil Cadotte Pilot 2 well pads The Cadotte Thermal Pilot has been used to test and develop the Seal Central Demonstration Project Total current cold production is roughly 8,000 bbl/d All production from Cadotte/Cliffdale and 60% of the production from Seal Lake is flow lined off site MURPHY OIL CORPORATION NYSE: MUR 4

5 The Proposed Project Murphy has now submitted its application to the Alberta energy regulator (AER) for the Seal Central Thermal Project The Project will produce roughly 1,980 m 3 (12,450 bbl)/ day of bitumen using horizontal cyclic steam stimulation (HCSS) The resulting bitumen will be diluted on site and pipelined to market First steam is expected 2019 and project life is expected to be approximately 35 years MURPHY OIL CORPORATION NYSE: MUR 5

6 Project Area The proposed project is located within Sunrise County within Township 85 and Range 15 W5M.. ' L/~'. \/ IN. \ gym w?h K», ln&v T... The proposed Seal Central Thermal Project is /_ / gswxkm w. W 1 ax located entirely X./?zw..7_.,,.. w within the existing Murphy /, Aw. Seal Lake \ p. m...ntm cold production x x M g w 5 development area XK The Central Processing Facility (CPF) is proposed to be located in Sections 12 and W5M..._u..sn..._..-s-x MURPHY OIL CORPORATION NYSE: MUR 6

7 _ Seal Central Resource Base Murphy has 100% working interest in 316,000 net acres within Seal Lake and Seal Central is the most prolific area The Project Area reservoir contains 65 e 6 m 3 of bitumen in place 4% is recoverable using primary production (underway) -nu 132 AePRov.g _ 397 T EA RAJPF- ao\_/al knnws An additional 24% of the oil and bitumen in place (15.6 e 6 m 3 ) is recoverable using thermal production MURPHY OIL CORPORATION NYSE: MUR 7..._

8 Horizontal Cyclic Steam Stimulation Murphy examined several production technologies and determined HCSS was optimum for the area geological conditions The process has three stages Steam injection Steam soaking; and Production The Bluesky Reservoir is at a depth of 630 metres The cap rock is the Wilrich shale which is approximately 120 m thick MURPHY OIL CORPORATION NYSE: MUR 8

9 Project Phases Bitumen will initially be produced from 7 separate well pads located within the area in orange Depending on success, Murphy anticipates a further expansion of the Project to the proposed development area This additional development is expected to occur within 10 years of first steam at Seal Central MERPH Y mmmmmw. Pr ma... and Develovmevnmea MURPHY OIL CORPORATION NYSE: MUR 9

10 Proposed Seal Central Project Components On-Site Seven Well Pads with: 84 production wells Observation and monitoring wells CPF and Associated facilities: Steam generation unit Production handling/treatment Storage tanks Water treatment and recycling VRU s/emergency flaring Laydown area Control room and warehouse Power Production? Services and utilities Main access road Off Site Camp (construction and operation) Steam delivery/production gathering Source water wells/pipelines Disposal wells, facilities and pipelines Solution gas, diluent and dilbit pipelines Borrow area All weather ROW roads/above ground power lines MURPHY OIL CORPORATION NYSE: MUR 10

11 Proposed Seal Central Project Layout MURPHY OIL CORPORATION NYSE: MUR 11

12 The Project Footprint Emeine s..: mp llmls (1 ul 9) nun-=:=u=n=u=;=u=a= MURPHY OIL CORPORATION NYSE: MUR 12

13 Current Seal Central Project Schedule Phases mm 2019 mm mazes azaammazozumuozuaqamazaa qzmu» Rumlte zv.»..=u... cmm. new rum :1 zmmmu Slumu snletmmu mgum. Somme FDMEIIM Prev & Sxomnssmn Rezhhxmv Renew VI/A/Icormnue mmugn/. afthe wmm mam MURPHY OIL CORPORATION NYSE: MUR 13

14 Social/Economic and Environmental Considerations Total Capital Cost: $624 million Maximum use of existing disturbed areas (50% of project footprint) Project Life: Project will employ: 35 years people during construction full time operations and maintenance staff Economic benefits also include: Total Prov. employment Total Prov. income GDP created 2,000 P-Y $254 million $414 million All produced oil to be flow lined from site avoiding the need for trucking Emissions/gas conservation fully consistent with new AER Peace River requirements Water source is brackish and the Project will have between 75% to 95% water recycle Ongoing and effective stakeholder consultation over the Project life MURPHY OIL CORPORATION NYSE: MUR 14

15 Thank You! Thank you for your time and attention.? We would be pleased to try to answer any questions you might have MURPHY OIL CORPORATION NYSE: MUR 15